Savers must start becoming investors

David Kuo, Director at the financial website The Motley Fool - Fool.co.uk, says: "The Bank of England has already slashed interest rates to a level where further cuts will have no discernible impact. So, today's decision to leave interest rates unchanged at 0.5% is not unexpected.

"That said, the Central Bank still has plenty of gunpowder left in its keg to blast the UK economy out of the doldrums. It has only printed two-thirds of the £75 billion of fresh money authorised by the Government. It can pump in another £75 billion after that.

"For now, printing money has not had any measurable effect. But at some point, quantitative easing will increase money supply. However, it will come at a heavy price - inflation.

"Over the long term, only two asset classes have beaten inflation. These are property and shares. The Motley Fool therefore urges savers to start thinking like investors and ensure that any cash that can be put away for five years or more is invested in one or, better still, both of these inflation-beating assets."